METALS-Copper falls from 3-week high as ceasefire doubts lift oil, revive growth concerns

April 9 (Reuters) - London copper prices fell on Thursday, retreating from a three-week high, as renewed Middle East tensions cast doubt on whether the U.S.-Iran ceasefire would hold, lifting oil prices and reviving concerns over the global economic growth outlook.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.6% at $12,625 a metric ton by 0546 GMT, after hitting its highest level since March 18 on Wednesday and marking its best one-day-gain since early February.

In contrast, the most-active copper contract SCFcv1 on the Shanghai Futures Exchange gained 0.4% to 97,680 yuan ($14,288.53) a ton, its highest since March 18.

Israel struck Lebanon on Wednesday, killing hundreds of people and drawing a threat of retaliation from Iran, which suggested it would be "unreasonable" to proceed with talks to forge a permanent peace deal with the U.S.

Oil prices rose over 2% to $97 a barrel on Thursday on concerns that supply from the key Middle East producing region may not fully resume. O/R

"We are seeing some natural profit-taking after yesterday's strong rally. This, combined with oil heading higher today is applying downward pressure on metal prices," said Tim Waterer, chief market analyst, KCM Trade.

Higher energy prices have dampened the outlook for metals by raising concerns that an energy shock could squeeze global growth and manufacturing.

Further pressuring prices, copper stocks in LME-approved warehouses MCU-STOCKS on April 8 stood at 385,275 tons, the highest since March 2018.

However, "resilient demand (for copper) due to the energy transition and data-centre growth will keep the market undersupplied by 4–5%, supporting prices," ANZ said in a note.

London aluminium CMAL3 rose 0.1% to $3,456.50 a ton, while the most-traded Shanghai contract SAFcv1 lost 0.5% to 24,575 yuan a ton.

Elsewhere on the LME, tin CMSN3 fell 1.5%, zinc CMZN3 gained 0.3%, lead CMPB3 was up 0.1% and nickel CMNI3 lost 0.4%.

Among other SHFE base metals, zinc SZNcv1 fell 0.3%, lead SPBcv1 was down 0.2%, tin SSNcv1 lost 1%, while nickel SNIcv1 gained 0.4%.